Problems with upgrading to imovie4 after running fine with imovie3

I have a friend who works with imovie 3. She has a iMac flat screen 800mhz with 512mb ram. She has made about nine movies using imovie3 and everything was working fine. She then tried to upgrade to iMovie4 (I know dont fix it if aint broke) and now her movies are all choppy, if you try to run the whole movie. It is fine however if you run a couple three frames at a time. It is almost like it gets overwelmed and starts and stops. We tried going back to imovie3 with no success (this was after a format/ reinstall of her osx 10.3).
I tried these movies on my machine (mac mini 1.5ghz with 512mb ram) using imovie 4 and they seem to run almost flawlessly). Can someone please shed some light on this as I am clueless on how to move forward.
Thanks ahead for your much needed help.
Mini Mac 1.5ghz PowerPC G4   Mac OS X (10.4.7)  

Turn off FileVault:
http://docs.info.apple.com/article.html?artnum=93460
If that didn't help, try everything here:
http://danslagle.dvmix.com/mac/OSX/panther.shtml
and here:
http://danslagle.dvmix.com/mac/iMovie/iMovie3FixesIssues.shtml
http://danslagle.dvmix.com/mac/iMovie/iMovie4FixesIssues.shtml
http://danslagle.dvmix.com/mac/iMovie/iMovie5FixesIssues.shtml

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